Budget writers faced with making cuts

Published: Monday, May 21, 2001

CONNIE MABINAssociated Press Writer

AUSTIN {AP} With days dwindling along with money, budget writers on Monday were faced with tough decisions: where to cut in the 2002-2003 spending plan now that the comptroller has lowered the revenue estimate.

Comptroller Carole Keeton Rylander on Sunday said lawmakers would have $18 million less than expected to spend in the next biennium.

In the grand scheme of the $111 billion budget, $18 million may seem small.

But with several high-profile expensive items competing for dollars and the economy slowing, it makes the tightest budget in a decade even tighter.

"This is obviously very important," said House Appropriations Chairman Rob Junell, D-San Angelo. "There will be some contingency cuts and some contingency appropriations."

That means lawmakers will have to move some yet-to-be-determined items onto a list that only will be funded if the money is found sometime in the future.

The cuts would be "fair and equitable," Junell said.

While slashing will likely come in bits and pieces from little-noticed areas of the budget, some of the session's top issues also could be in jeopardy of seeing funding cut or eliminated.

"If I had my way, we would trim back the size of the initial state teachers insurance program and make sure we meet the obligations we have already made," said Senate Finance Chairman Rodney Ellis, D-Houston.

House Education Chairman Paul Sadler said the conference committee hammering out a $1.28 billion compromise insurance plan will continue working despite the budget crunch.

"I'm absolutely unconcerned about that comment," said Sadler, D-Henderson. "If he needs money, he needs to go look someplace besides public education."

Other potential victims of the red pen could be $1.1 billion in increases to social services, including making it easier for children to enroll in Medicaid.

"I'm concerned," said Rep. Garnet Coleman, a member of the conference committee working on the Senate-House spending plan who was instrumental in the social services boost.

"What I hope is that as we look through the final version in the appropriations committee that we take in consideration all the needs," said Coleman, D-Houston.

Other high-profile areas in the budget that could be reduced are a $500 million increase to higher education, including $335 million to expand the TEXAS Grant scholarship program, and $514 million for state employee pay raises.

Rylander's announcement pushed some lawmakers, including Ellis, to increase the pressure on Gov. Rick Perry to change his mind about opposing a proposed nursing home bed tax that could raise the state $465 million for the financially ailing industry.

The "Quality Assurance Fee" bill passed the Senate. A weaker version is scheduled for House debate on Tuesday.

Perry remains opposed, spokeswoman Kathy Walt said, "to a nursing home bed tax that would create a new tax on the most vulnerable population, the elderly in nursing homes."

The governor proposed $104 million in increases in his budget, and his staff has recently identified $200 million that lawmakers could use for nursing homes, Walt said.